UK beauty industry loses jobs despite £28.3 billion economic contribution

Employment across the UK beauty industry fell by 2.8% in 2025, even as the sector contributed £28.3 billion to the economy, according to the British Beauty Council’s Value of Beauty 2026 report, compiled by Oxford Economics.

The annual report, commissioned by the British Beauty Council and funded by its patrons, covers hairdressing, wellness, aesthetics, consumer goods, manufacturing and marketing. It found that businesses cut roles as they absorbed higher wage costs, increased National Insurance contributions, rising business rates and higher utility bills.

Direct employment in the sector fell by 2.1%, while total employment - including roles supported across the wider supply chain - dropped by 2.8%. The decline follows predictions in last year’s report of a 2% reduction and 14,000 job losses, confirming that cost pressures have now fed through into measurable workforce impacts.

The industry still supported more than 595,000 jobs in 2025, a figure the report says is close to employment levels in the construction sector.

Economic scale and tax contribution

The sector’s £28.3 billion GDP contribution represented a marginal 0.2% decrease in cash terms on revised year-on-year figures, but it remained larger than the contribution of the creative, arts and entertainment activities sector.

More than 51% of the total GDP contribution was generated directly by the industry, with beauty services - including hairdressing and beauty therapies - accounting for the largest share of direct GDP at £5.7 billion.

The industry directly contributed £4.6 billion in tax revenues and supported £8.8 billion in total tax revenue for the UK Treasury.

Millie Kendall OBE, CEO of the British Beauty Council, said: "Successive budgets have made it increasingly difficult for beauty businesses to create and sustain jobs. Ours is a labour-intensive sector that plays a vital role in driving social mobility and providing employment opportunities for young people.

"Despite these headwinds, the good news is the industry's economic contribution remains strong, demonstrating the resilience of consumer demand and the important role our sector continues to play in supporting Britain's high streets and wider economy."

Export trends and US tariff impact

UK beauty and personal care exports totalled £4.2 billion in 2025, representing 1.25% of total UK goods exports. The EU Single Market accounted for 70% of those exports, up four percentage points since 2019.

Exports to the United States declined, with shipments 19% lower in Q4 2025 than in Q1 2025, following the introduction of tariffs and the suspension of the de minimis threshold on commercial shipments.

2026 outlook

Consumer spending on beauty products and services is expected to rise by 3.9% in 2026, while total industry-supported employment is projected to increase to 609,000 jobs, a 0-2.4% gain on 2025. The industry’s total tax contribution is forecast to reach £9.4 billion.